Business Research Method Research Proposal: China Brand Choice

This report analyzes a business research proposal that investigates the decision-making processes of Chinese consumers regarding their preference for foreign versus domestic brands, specifically in the context of sports shoes and mobile phones. The research highlights the perceived advantages of foreign brands, such as higher quality and fashion appeal, while also acknowledging the growing competitiveness of domestic brands. The study explores factors influencing consumer switching intentions, including customer satisfaction, product availability, and associated costs. The research methodology involved surveys of university students, examining their brand choices and the factors driving their decisions. The analysis includes discussions of decision-making styles, sampling strategies, and the use of binary logistic regression to determine the factors influencing brand choice. The findings suggest that while foreign brands currently dominate, domestic brands are improving in quality, and that price, quality, and brand are the most important factors for consumers.

Running head: BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
Business Research Method Research Proposal
Name of Student-
Name of University-
Authors Note-

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Answer to Question 1:
The problem that is addressed in this research paper is about the decision making made
by the residents of China to switch their using of foreign brands instead of domestic brands in the
sector of purchasing sports shoes and cell phones. The research states that the domestic brands of
China has low quality products, provides low price to consumers, old fashioned and recreational
conscious and provides confusion among the buyers as compared to the foreign brands. On the
other hand foreign brands provide their customers with high quality of product, fashion and
recreation to retain their customers. The problem lies this the sector in which the local brands
must produce products that are of high quality and at low price. There exit a tough competition
between the local brands and the foreign brands in China. Studies shows that the people of China
prefers to buy Japanese and Western products more than its local brand because the quality of the
foreign brands and their symbolic value. The respondents of China mostly favor foreign brands.
Customers have experience their influence to switch their buying from local products to
foreign products. Whether a marketing strategy is effective or not it is indicated by the intentions
of the citizens of China in switching their choice. There are many factors that are identified for
the switching intentions of the consumers. This includes the customer satisfaction, alternative
availability of the product, and the switching cost that is related with product. These factors are
considered as the primary reason for the consumers switching their intention for buying foreign
products. Customer retention is not always followed by these factors. The way about how the
product is and how the service is provided to the customer, is impacted directly on switching
intention of the customer. The service or the product that is given to the customer defines
weather the customer will switch their intention to foreign products. The consumers make

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decision about hoe the product or service is presented to them. The customers switch their
decisions to foreign brands if they do not get proper quality, service and new fashioned products.
Maximum consumers in China use the foreign brands as their daily used products and services.
But the trend is changing to some extent in China. Before studies showed that the respondents of
China that used the local brands in daily lives were about only 15 percent which has increased its
percentage to 23 %. This increase may happen due to several factors. This may happen due to
low price on local brands or may happen due to demographic factors for intention of switching.
Answer to Question 2:
According to the literature review that is mentioned in the research paper, the brand
choice of the consumers varies both in developed countries as well as the developing countries.
In countries that are developed, the quality of the local products is comparatively higher from the
imported products. But in developing countries, the foreign products are more superior to that of
the local products. A phenomenon has aroused among the customers that the products that comes
from the developing countries are less superior to that of the products from developed countries.
They believe that the products of the developing countries have low quality, performs badly
which results in dissatisfaction. Big brands are trusted more by the consumers and are more
reliable. By advertising or words by mouth, brand trust is influenced by the customers.
The preference for the international products in China is more among the consumers. The
local Chinese brands struggle to build brand trust and thus faces competition and the product
surplus in the domestic market. The consumers of China prefer more on foreign brands. The
literature review states a survey of an author Wang & Yang. They conducted a survey across the
cities of China to get the auto brand preferences. About 1200 citizens were interviewed. The

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research found that much of the respondents depend on the brands that comes from German
which effects the intention of the consumers in China. Another author Ding investigated the
preference of Chinese consumers who are adult, for the foreign products because of mostly three
reasons better design, superior brands and superior quality. China is a developing country and it
is developing rapidly. Since it is developing rapidly, consumers of China are becoming much
more diverse and sophisticated. Studies states that the consumers of China is not only depended
on foreign products only. The residents of China who have lower income mostly favor Chinese
brands because they are much cheaper than the foreign products and those products are
affordable to them. The Chinese products have also improved the quality of their products which
is giving a tough competition to the foreign markets. Low price at affordable price will be
enhanced by all the residents of China.
Switching intention: Customers usually have a tendency to switch their choice of brands
from one brand to another. Retention from the client helps to boost the business and gives profit.
If a customer retains with a brand for much longer period of time, then it is mostly possible that
the utility is generated by the customers also increases. The brand companies do not want to lose
their customers by degrading their quality of product. The switching intentions that influence the
customers mainly prove satisfaction, alternative and cost of the product also faces challenges.
The customer shifts their intention if they are not satisfied by the product or the services that are
provided to them. Studies in the literature review showed that about 90 percent of the companies
were satisfied with all the current partners of their business but switched to a different provider
in next year.
Decision-making styles: The decision making style that are made by the consumers are
mostly crucial. Decision making is considered as a mental orientation for characterizing the

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approach of the customer for making choices. Previous studies in the literature review states that
the style Chinese decision making relate to the preference of local and foreign brands.
Answer to Question 4:
The article focus on the decision making that was done on the university students who
bought sport shoes and mobile phones. The first thing that was noticed was that the young adults
have more buying power and a good potential to make an increment in their buying power. The
second thing that was noticed was that the students of the university were considered as most
important markets for buying the cell phones and the sportswear. Thirdly retail businesses can
relate with separate styles of decision making. Sport shoes and cell phones are mostly common
among the students of university and they also represent fashion and technology.
Sample and procedure: The method that was undertaken by several researchers did 628
surveys which distributed electronically surveys for the undergraduate students in China. 584
questions were collected from the survey. The data analysis that came out from the survey had an
equal number of females and males. The percentages of male were about 50.4% and that of
female were 49.6%. There were also few seniors that are about 3.60 %. The average monthly
disposal of income for the month was around 900 RMB.
The procedure that was undertaken by the researchers was appropriate because there is no
other better option to research on the switching intention and decision making that was to be held
on the respondents of China. The responses were taken as a five point like scale which has a
range from 1 to 5. 1 represented strongly disagrees and 5 represented strongly agree. There came
out several questions that came from the survey that were done in the purchase of sports shoes
and cell phones. The question was about what brands of mobile phones were used by the

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students and what brand of sport shoes they use. They also questioned that which brand of sport
shoes and cell phone they will buy if they have no limits on money. These questions were asked
to see the switching intention of the students without the price factor. Respondents choose brands
that were foreign as well as local in China. Data is also mentioned about the percentage of
purchase intention and the ownership of all the domestic and foreign sport shoes and cell phones.
The study depicts about 64 percent of residents have foreign mobile phones and among all the
students, about 89 percent of students are willing to buy a cell phone of foreign brands. 46
percent of the students used local brand of cell phones and 40 percent students wanted to buy
Chinese mobile phones. The data that is shown in this article shows about 45 percent of
respondents had a foreign sport shoes. 79 percent of them want to get shoes of foreign brands. 69
% of the students had Chinese shoes and 47 percent wants to remain in the Chinese brands itself.
There was another question that was asked to the students. The students were asked to mark all
the possible factors that were concerned in buying the sport shoes or cell phones. The list of
answer that were given to them were about the price, quality of the product, fashion, promotion,
multifunction, service after sale and others. The quality, brand and price were the most common
high factors that were considered by the students while buying the sport shoes and the cell
phones.
Answer to Question 5:
The sampling strategy that was used in this research was on the universities students. The
university students use more cell phone and they have a fascination on sport shoes and cell
phones. Some questions were asked to some of the students of some universities and according
to their answers the rating was done. To determine all the styles of decision making that are
related to brand of product and services that are chosen by the customers to switch their

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intentions and the regression analysis of the binary logistic was also conducted. The regression
of binary logistic is mainly a type of regression where dependent variable is considered as a
dummy variable that has two outcomes. The switching intention is considered as seven
covariates that are continuous and are also coded as dichotomous. The sampling strategy is one
of the best strategies that were used in the research.
Some more areas could also be used for carrying out their research process. Instead of
carrying out research only on universities, the researchers might also conduct surveys in offices.
The working sectors also use mobile phone in abundant amount. From there also data analysis
was possible regarding the switching intention about the people in China regarding local brands
or foreign brands.